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What is the optimal approach that organizations (as end users) should pursue to implement technology in the interest of enabling strategy management processes? Many organizations have already acquired considerable tech capability that they have yet to activate, simply because they lack sufficient maturity to leverage these tools productively. We asked two technology thought leaders-Frank Buytendijk of BeInformed (and formerly of Oracle) and Jonathan Hornby of the SAS Institute-to weigh in on what is for many a chicken-and-egg conundrum.

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It took three years of intensive research and massive data crunching, but they did it: academics Gerald DeBusk and Aaron Crabtree showed, in their 2008 study, the strongest objective evidence yet of the execution premium that BSC users achieve against their peers.

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You're a B2B wholesaler of commodity products. Your suppliers are major manufacturers with marketplace clout. Given the Internet and supply-chain efficiency tools and processes, what's to stop you from being disintermediated out of business? Seeing the potential of strategically aligning with key suppliers, Lagasse, Inc. supply chain executive Chris Adams used the BSC to find new sources of value for both sides. His new spin on cost to serve has catapulted Lagasse's sales- and supplier and customer relationships-to new heights.

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Employee visioning. The learning organization. Can these indeed be the foundation of a strategic transformation? Just ask Hindustan Petroleum, India's second-largest integrated oil company. HPCL takes Motivating to Make Strategy Everyone's Job to a new level, viewing human capital development as, in the words of its chairman, "the vehicle for delivering the organization's strategic objectives."HPCL's dramatic growth and impressive accomplishments in the past five years stem from a carefully orchestrated, multipronged effort at becoming an employee-empowered, customer-focused learning organization-one dedicated to continuous improvement and innovation.

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As a mature industry, the utility business is marked by a distinct, traditional corporate culture. Often, an us-versus-them attitude prevails between the blue-collar (and heavily unionized) workforce and white-collar employees. Historically, utilities have focused on day-to-day operations and solving emergencies. Public Service Electric & Gas's BSC-based transformation and its progressive-minded leaders have changed all that, introducing a data-driven, customer-oriented, strategy focus that emphasizes performance in all quarters. We recently talked to Ralph Izzo, chairman and CEO of parent Public Service Enterprise Group (who implemented the BSC as president of PSE&G) and Ralph LaRossa, current president of PSE&G, about the many dimensions and challenges of strategic transformation, from winning buy-in to effecting cultural change.

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Luxfer Gas Cylinders, a global manufacturer and distributor, provides an apt illustration of Kaplan and Norton's six-stage management system. (See "On Balance" story.) A 2006 BSC Hall of Fame winner, the U.K.-based company (with operations in Europe, the Asia-Pacific region, and North America), excels at three stages: planning the strategy, aligning the organization, and planning operations-in particular, at making the crucial link between strategy and operations. Few organizations have achieved the level of sophistication and rigor Luxfer has in managing by strategic theme and integrating its planning processes.This special extended Case File offers rich detail about Luxfer's approach.

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Setting appropriate targets--ones that motivate the right behavior without creating unintended consequences--is a delicate task. And ensuring that targets are fair across different units and functional areas is equally tricky. In the first of this occasional series on the challenges of target setting, we look at how two organizations in volatile industry environments set stretch targets.

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From bureaucratic backwater to exemplary government organization: How did the U.S. Department of Commerce's Economic Development Administration (EDA) revitalize itself? Energized by President Bush's Management Agenda, EDA leaders adopted the Balanced Scorecard to support a strategic transformation that in short order began achieving impressive results. Assistant Secretary of Commerce for Economic Development Sandy K. Baruah shares his perspectives on the agency's winning approach that in 2004 won it entry into the BSC Hall of Fame.

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With more and more companies chasing a limited pool of customers, smart companies are focusing on customers--how to keep the valuable ones and grow the relationship. Customer relationship management experts Don Peppers and Martha Rogers recently introduced an innovative metric that they believe may be the next great breakthrough concept in customer strategy and business: return on customer. Analogous to the return on investment concept, return on customer is designed to measure the lifetime value of the customer. Rogers speaks with Balanced Scorecard Report about why this metric matters.

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